Which states attract the most young and rich households?
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Which states attract the most young and rich households?
Aerial view of the Tampa, FL skyline.
Many affluent young people often relocate for better jobs, lifestyle upgrades and tax advantages, as well as new experiences, friendships and relationships. This can have an outsized effect on local economies and politics, specifically housing, employment and voting, among other important factors.
With this in mind, SmartAsset used IRS data to rank states by the net inflow of young and rich heads of households—those earning at least $200,000 per year and aged 26 to 35.
Key Findings
Florida and Texas attract more than double the young and rich households as any other states. After accounting for young high earners leaving, Florida had the biggest gain at 1,786 households. Texas ranked second with a net gain of 1,660 young and rich households. Colorado trailed behind in third place with a net gain of 720.Despite net losses of high-earners across all ages, the young and rich are moving to these two states. New Jersey and Washington each lost thousands of households earning $200,000 or more when considering taxpayers of all ages. However, these states ranked fifth and eighth, respectively, when it comes to attracting young people in this income range. Washington netted 383 additional young and rich households over one year, while New Jersey gained 300. Half of states attracting the most young and rich households don't charge state income tax. High-earning households have the most to gain when it comes to minimizing income taxes. While nine states don't charge an income tax in addition to federal taxes, five of them made it to the top 10 places where the young and rich are moving: Florida (net gain of 1,786 young and rich households), Texas (1,660), Washington (383), Tennessee (347) and Nevada (162).California lost over 3,000 young and rich households. But it's not the only state. Illinois lost the second-most study-wide with an emigration of 1,323 households. The outflow was worth approximately $5.1 billion in taxes. Massachusetts lost a net of 1,102, and New York ranked fourth-lowest with a net loss of 345 households.The young and rich earn most in Nevada. The average adjusted gross income (AGI) for the young and rich in Nevada was $731,000. Wyoming ranked second for this metric at $612,000, and young and rich Floridians earned third-most at $526,000.Top 10 States That Gained the Most Young and Rich Households
Table showing top cities where the young and the rich are moving
Net migration of young and rich households: 1,786Outflow of young and rich households: 2,084Inflow of young and rich households: 3,870Total young and rich tax returns filed: 33,456Average AGI of young and rich households in the state: $526,273Net migration of young and rich households: 1,660Outflow of young and rich households: 3,376Inflow of young and rich households: 5,036Total young and rich tax returns filed: 65,904Average AGI of young and rich households in the state: $405,215Net migration of young and rich households: 720Outflow of young and rich households: 1,417Inflow of young and rich households: 2,137Total young and rich tax returns filed: 19,911Average AGI of young and rich households in the state: $389,859North CarolinaNet migration of young and rich households: 521Outflow of young and rich households: 1,294Inflow of young and rich households: 1,815Total young and rich tax returns filed: 18,817Average AGI of young and rich households in the state: $375,057Net migration of young and rich households: 383Outflow of young and rich households: 3,088Inflow of young and rich households: 3,471Total young and rich tax returns filed: 50,509Average AGI of young and rich households in the state: $389,713South CarolinaNet migration of young and rich households: 372Outflow of young and rich households: 399Inflow of young and rich households: 771Total young and rich tax returns filed: 6,120Average AGI of young and rich households in the state: $370,613Net migration of young and rich households: 347Outflow of young and rich households: 704Inflow of young and rich households: 1,051Total young and rich tax returns filed: 10,438Average AGI of young and rich households in the state: $451,633New JerseyNet migration of young and rich households: 300Outflow of young and rich households: 3,135Inflow of young and rich households: 3,435Total young and rich tax returns filed: 35,294Average AGI of young and rich households in the state: $388,643Net migration of young and rich households: 192Outflow of young and rich households: 802Inflow of young and rich households: 994Total young and rich tax returns filed: 10,992Average AGI of young and rich households in the state: $518,274Net migration of young and rich households: 162Outflow of young and rich households: 464Inflow of young and rich households: 626Total young and rich tax returns filed: 4,764Average AGI of young and rich households in the state: $731,304
Net migration of young and rich households: -3,226Outflow of young and rich households: 10,637Inflow of young and rich households: 7,411Total young and rich tax returns filed: 184,454Average AGI of young and rich households in the state: $480,776Net migration of young and rich households: -1,323Outflow of young and rich households: 3,141Inflow of young and rich households: 1,818Total young and rich tax returns filed: 33,304Average AGI of young and rich households in the state: $396,346Net migration of young and rich households: -1,102Outflow of young and rich households: 3,009Inflow of young and rich households: 1,907Total young and rich tax returns filed: 32,047Average AGI of young and rich households in the state: $379,348New YorkNet migration of young and rich households: -345Outflow of young and rich households: 7,580Inflow of young and rich households: 7,235Total young and rich tax returns filed: 84,586Average AGI of young and rich households in the state: $457,137Net migration of young and rich households: -320Outflow of young and rich households: 2,084Inflow of young and rich households: 1,764Total young and rich tax returns filed: 24,703Average AGI of young and rich households in the state: $367,912Net migration of young and rich households: -158Outflow of young and rich households: 968Inflow of young and rich households: 810Total young and rich tax returns filed: 14,589Average AGI of young and rich households in the state: $386,853Net migration of young and rich households: -94Outflow of young and rich households: 338Inflow of young and rich households: 244Total young and rich tax returns filed: 4,480Average AGI of young and rich households in the state: $379,425Net migration of young and rich households: -83Outflow of young and rich households: 205Inflow of young and rich households: 122Total young and rich tax returns filed: 1,293Average AGI of young and rich households in the state: $336,148Net migration of young and rich households: -70Outflow of young and rich households: 648Inflow of young and rich households: 578Total young and rich tax returns filed: 12,201Average AGI of young and rich households in the state: $346,006Net migration of young and rich households: -66Outflow of young and rich households: 616Inflow of young and rich households: 550Total young and rich tax returns filed: 7,613Average AGI of young and rich households in the state: $367,704Data and Methodology
To determine where the young and rich are moving, SmartAsset examined the latest IRS data, which comes from the 2021 and 2022 tax years. Rich households are those with adjusted gross incomes of $200,000 or more. Only applicable tax returns filed for heads of households aged 26 to 35 were considered. The inflow of qualifying households in each state were compared with the outflows to determine the net migration of high-earning households. The average AGI for a state's young and rich households was also considered.
This story was produced by SmartAsset and reviewed and distributed by Stacker Media.
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